Norwegian Krone Soars After Norges Bank Hikes Interest Rate

The Norwegian krone surged today after the nation’s central bank announced an interest rate hike and signaled about probability of additional hikes in the future.
The Norges Bank announced today that it raises its main interest rate by 0.25 percentage point to 1.25 percent. The bank commented on the decision:

Growth in the Norwegian economy is solid, and capacity utilisation is estimated to be somewhat above a normal level. Underlying inflation is a little higher than the inflation target.

Furthermore, the central bank also signaled that more hikes are possible:

The overall outlook and balance of risk suggest that the policy rate be increased somewhat further.

USD/NOK sank from 8.7016 to 8.5635 as of 9:44 GMT today. EUR/NOK tanked from 9.7686 to 9.6754.

If you have any questions, comments, or opinions regarding the Norwegian Krone, feel free to post them using the commentary form below.

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